Stratyfy's proprietary technology expands pool of creditworthy customers - increasing addressable market for financial institutions by 70%
NEW YORK, NY / ACCESSWIRE / June 11, 2024 / Stratyfy, a women-led fintech confronting bias in AI and optimizing credit risk decisions with transparent machine learning solutions, today released the findings of a recent study comparing their proprietary technology with traditional, data-driven approaches that small to midsize banks traditionally deploy.
The results indicate that Stratyfy's proprietary technology - specifically, its Probabilistic Rules Engine (PRE) - helped pinpoint nearly twice as many pre-qualified loan applicants than traditional decisioning methods, while lowering the overall bad rate. In turn, these findings suggest that leveraging AI/ML in credit decisioning can empower financial institutions to gain more creditworthy customers, boost profitability, and reduce financial risk. Simultaneously, the use of this advanced technology allows more borrowers to access affordable credit.
"At Stratyfy, we believe that accurate, interpretable AI in financial services should be a baseline - and that data is a force for good," said Laura Kornhauser, CEO and co-founder of Stratyfy. "Today's findings indicate that we can successfully improve credit decisioning using AI that benefits both lenders and borrowers alike. By expanding access to advanced machine learning at financial institutions, we can help more lenders grow their bottom lines, while ensuring regulatory compliance and driving financial inclusion."
In this experiment, Stratyfy leveraged consumer data to develop predictive models and strategies that assessed customer performance in the U.S. population across various loan types. Stratyfy divided populations into four industry-standard segments based on credit score and the number of tradelines, which are typically used to assign loan product offerings. Deploying both traditional credit decisioning and Stratyfy's patented PRE, the 24-month assessment found that Stratyfy's methods were more effective in discerning "good" and "bad" indicators like loan delinquencies and outperformed traditional methods across every segment.
Notably, Stratyfy's PRE enables lenders to set their own thresholds for approvals and customize their strategies to specific risk factors, bringing greater flexibility and control to financial institutions in their qualification policies and criteria. Stratyfy's PRE also offers unprecedented visibility in decisioning, meaning any predictions like "bad" loan performance can be clearly explained to customers, regulators and other stakeholders based on clear, interpretable rules. Moreover, Stratyfy's PRE pairs data-driven insights with human expertise, allowing lenders to incorporate information like market conditions and emerging risk factors into its models.
Learn more and download the full white paper at www.stratyfy.com/PRE.
ABOUT STRATYFY
Stratyfy, a women-led fintech, is optimizing how financial institutions make decisions, unlocking data-driven growth without added risks or the need for in-house data experts. With our interpretable AI solutions, financial institutions are making more accurate, efficient, and fair financial decisions in credit risk, fraud, and compliance. Stratyfy was recognized as a Benzinga Fintech Awards finalist in the "Best Lending Solution" category and included in the AIFintech100 for the second consecutive year. For more information, visit stratyfy.com and follow Stratyfy on LinkedIn and X.
Media Contact
Alex Barton-Perez
Caliber Corporate Advisers
stratyfy@calibercorporate.com
SOURCE: Stratyfy
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